Regulator threat sees Bitcoin value plunge
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The prospect of a regulatory crackdown on cryptocurrencies has seen the value of Bitcoin tumble to $9,958 (£7,222) before making a slight recovery, according to the price index run by the news site Coindesk.
The fall represents a drop of nearly 50 per cent since it peaked close to $19,800 five weeks ago.
However, it remains significantly higher than its $900 position recorded in January 2017.
Other crypto-currencies including Ethereum, Ripple, Litecoin and Bitcoin Cash have also experienced steep falls over the past day as analysts put the fall down to regulatory concerns in South Korea, China and Europe.
Neil Wilson, senior market analyst at ETX Capital, said: “Bitcoin faces a regulatory crunch sooner or later and, increasingly, we see signs of this starting to bite.
“China is said to be targeting websites and mobile apps that offer exchange like services, in a bid to block access to platforms that deliver centralised trading on cryptocurrencies.
“South Korean finance minister Kim Dong-yeon reiterated on Tuesday that the government is actively considering an outright ban on crypto trading.”
US billionaire and investment doyen Warren Buffett has ruled out a foray into cryptocurrencies, warning the Bitcoin boom will “come to a bad ending”.
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